Xerox Corporation has priced US$800 million in senior secured notes, set to be issued on 1 April.
Half the principal amount will be issued with a 1.250% coupon and be due in 2030 as the first lien notes. The second lien notes will have a 12.500% coupon and be due in 2031.
The company intends to use proceeds from the first lien notes offering, in addition to existing cash, to redeem its 5.000% senior notes due in 2025. It plans to redeem US$90 million of the 2025 notes.
Funds will also be used to repay a US$95 million principal amount in borrowings under Xerox’s first lien senior secured term loan credit facility, and for general corporate purposes.
The second lien notes will be used to fund part of the purchase price for Xerox’s acquisition of printer manufacturer Lexmark, expenses associated with the planned acquisition, and the repayment of Lexmark’s outstanding debt.
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